Classifieds powered by Gulf News

Sluggish mood prevails in Dubai index as traded value tumbles 50%

Traded value fell to Dh310m on Sunday from Dh642m in the previous session

Gulf News

Dubai: Sluggish mood prevailed on Dubai index on lack of positive triggers.

Dubai index fell, continuing its losing streak for another session, on selling in few stocks like Dubai Islamic Bank, and Dubai Financial Market stock even as traded volumes fell by more than 50 per cent.

The Dubai Financial Market General Index closed 1.13 per cent lower at 3,543.33, after losing 1.7 per cent in the previous five sessions. Traded value fell to Dh310 million on Sunday from Dh642 million in the previous session.

“A big part of the recent move and increase in trading volumes in the UAE market were speculative based on M&A activities. Volumes are dropping due to lower participation of institutional investors as corporate earnings for the fourth quarter were not impressive,” Tareq Qaqish, an independent asset manager said.

Traded value have fallen from a high of Dh1.5 billion which was on the back of a surge in trading activity in small cap stocks like Gulf Finance House, Gulf Navigation, Shuaa Capital among others.

GFH closed 1.16 per cent lower at Dh2.56, while Dubai Entertainments closed 2.06 per cent lower at Dh0.99. Air Arabia fell more than 2 per cent to close at Dh1.23. Dubai Islamic Bank closed more than 2 per cent to end at Dh5.47.

Out of a total of 36 stocks traded on the exchange, shares of 26 firms fell, while other 6 firms rose. The rest remained steady.

The Abu Dhabi Securities Exchange index closed 0.68 per cent lower at 4,565.15.

“A break below the 50 day simple moving average at 4,565 shall be considered bearish and the index may move towards the previous low at 4,440,” Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities said in a note.

National Bank of Abu Dhabi closed 2.34 per cent lower at Dh10.45. Emirates Telecommunications closed 0.85 per cent lower at Dh17.85. RAK Poultry closed 15 per cent higher at Dh3.22.

Out of a total of 32 stocks traded on the exchange, shares of 8 firms rose, while 17 others fell. Watchout

Going forward, traders would turn their attention to overseas events along with local results.

“Although international markets remain positive, the recent possible announcement for three Fed hikes could affect investors to shy away towards emerging markets,” Qaqish said.

“Investors are evaluating fourth quarter numbers and revisiting their 2017 estimates and outlook. High yielding stocks could be the winners in the coming few weeks,” Qaqish added.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.69 per cent lower at 6,967.97. The parallel index closed 1 per cent lower at 5,933.79.

The Muscat Securities MSM 30 index closed at 5,807.81, down 0.12 per cent. The Qatar exchange index closed 0.29 per cent lower at 10,721.15.

Company Performance

As on

Loading...